XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.20.2

FAIR VALUE MEASUREMENTS | 9 Months Ended
--- | ---
Sep. 30, 2020
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following tables present the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019:
|  | As of September 30, 2020
|  | Balance |  | Level 1 |  | Level 2 |  | Level 3
Foreign exchange derivative assets |  | $ | 936 |  |  | $ | — |  |  | $ | 936 |  |  | $ | — |
Total assets measured at fair value on a recurring basis |  | $ | 936 |  |  | $ | — |  |  | $ | 936 |  |  | $ | — |
Foreign exchange derivative liabilities |  | $ | 3,689 |  |  | $ | — |  |  | $ | 3,689 |  |  | $ | — |
Contingent consideration |  | 5,913 |  |  | — |  |  | — |  |  | 5,913 |
Total liabilities measured at fair value on a recurring basis |  | $ | 9,602 |  |  | $ | — |  |  | $ | 3,689 |  |  | $ | 5,913 |
|  | As of December 31, 2019
|  | Balance |  | Level 1 |  | Level 2 |  | Level 3
Foreign exchange derivative assets |  | $ | 1,910 |  |  | $ | — |  |  | $ | 1,910 |  |  | $ | — |
Total assets measured at fair value on a recurring basis |  | $ | 1,910 |  |  | $ | — |  |  | $ | 1,910 |  |  | $ | — |
Foreign exchange derivative liabilities |  | $ | 243 |  |  | $ | — |  |  | $ | 243 |  |  | $ | — |
Contingent consideration |  | 10,495 |  |  | — |  |  | — |  |  | 10,495 |
Total liabilities measured at fair value on a recurring basis |  | $ | 10,738 |  |  | $ | — |  |  | $ | 243 |  |  | $ | 10,495 |
The foreign exchange derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange data at the measurement date. See Note 5 “Derivative Financial Instruments” in the condensed consolidated interim financial statements for additional information regarding derivative financial instruments. The fair value of the contingent consideration was determined using a probability-weighted expected return method and is based on the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. Although there is significant judgment involved, the Company believes its estimates and assumptions are reasonable. In determining fair value, the Company considered a variety of factors, including future performance of the acquired businesses using financial projections developed by the Company and market risk assumptions that were derived for revenue growth and earnings before interest and taxes. The Company estimated future payments using the earnout formula and performance targets specified in the purchase agreements and adjusted those estimates to reflect the probability of their achievement. Those weighted-average estimated future payments were then discounted to present value using a rate based on the weighted-average cost of capital of guideline companies. The discount rates used to determine the fair value of contingent consideration for the 2020 Acquisitions ranged from a minimum of 15.5% to a maximum of 17.5%. Changes in financial projections, market risk assumptions, discount rates or probability assumptions related to achieving the various earnout criteria would result in a change in the fair value of the recorded contingent liabilities. Such changes, if any, are recorded within Interest and other income, net in the Company’s condensed consolidated statement of income and comprehensive income. A reconciliation of the beginning and ending balances of Level 3 acquisition-related contingent consideration using significant unobservable inputs for the nine months ended September 30, 2020 is as follows:
|  | Amount
Contingent consideration liabilities as of January 1, 2020 |  | $ | 10,495 |
Payment of contingent consideration for previously acquired business |  | (7,869) |
Acquisition date fair value of contingent consideration — 2020 Acquisitions (Note 2) |  | 5,292 |
Changes in fair value of contingent consideration included in Interest and other income, net |  | (1,480) |
Effect of net foreign currency exchange rate changes |  | (525) |
Contingent consideration liabilities as of September 30, 2020 |  | $ | 5,913 |
Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis Estimates of fair value of financial instruments not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The generally short maturities of certain assets and liabilities result in a number of assets and liabilities for which fair value equals or closely approximates the amount recorded on the Company’s condensed consolidated balance sheets. The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated:
|  |  |  |  |  | Fair Value Hierarchy
|  | Balance |  | Estimated Fair Value |  | Level 1 |  | Level 2 |  | Level 3
September 30, 2020 |  |  |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 171,903 |  |  | $ | 171,903 |  |  | $ | 171,903 |  |  | $ | — |  |  | $ | — |
Total cash equivalents |  | $ | 171,903 |  |  | $ | 171,903 |  |  | $ | 171,903 |  |  | $ | — |  |  | $ | — |
Restricted cash |  | $ | 1,158 |  |  | $ | 1,158 |  |  | $ | 1,158 |  |  | $ | — |  |  | $ | — |
Time deposits |  | $ | 60,089 |  |  | $ | 60,089 |  |  | $ | — |  |  | $ | 60,089 |  |  | $ | — |
Employee loans |  | $ | 1,168 |  |  | $ | 1,168 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,168 |
Financial Liabilities: |  |  |  |  |  |  |  |  |  |
Borrowings under the 2017 Credit Facility |  | $ | 25,006 |  |  | $ | 25,006 |  |  | $ | — |  |  | $ | 25,006 |  |  | $ | — |
|  |  |  |  |  | Fair Value Hierarchy
|  | Balance |  | Estimated Fair Value |  | Level 1 |  | Level 2 |  | Level 3
December 31, 2019 |  |  |  |  |  |  |  |  |  |
Financial Assets: |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 407,817 |  |  | $ | 407,817 |  |  | $ | 407,817 |  |  | $ | — |  |  | $ | — |
Time deposits |  | 10,002 |  |  | 10,002 |  |  | — |  |  | 10,002 |  |  | — |
Total cash equivalents |  | $ | 417,819 |  |  | $ | 417,819 |  |  | $ | 407,817 |  |  | $ | 10,002 |  |  | $ | — |
Restricted cash |  | $ | 1,136 |  |  | $ | 1,136 |  |  | $ | 1,136 |  |  | $ | — |  |  | $ | — |
Employee loans |  | $ | 2,434 |  |  | $ | 2,434 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,434 |
Financial Liabilities: |  |  |  |  |  |  |  |  |  |
Borrowings under the 2017 Credit Facility |  | $ | 25,017 |  |  | $ | 25,017 |  |  | $ | — |  |  | $ | 25,017 |  |  | $ | — |
Non-Marketable Securities Without Readily Determinable Fair Values The Company holds investments in equity securities that do not have readily determinable fair values. These investments are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. The carrying amount of these investments was $25,000 and $5,750 as of September 30, 2020 and December 31, 2019, respectively and is classified as Other noncurrent assets in the Company’s condensed consolidated balance sheets.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration